UDC 332.01:336.02; JEL E60, D81, H70, R10
Voznyak, H. V., & Benovska, L. Ya. (2021). Obgruntuvannya povedinkovykh zakonomirnostey pryynyattya rishen' sub’yektamy finansovo-ekonomichnykh vidnosyn na rehional'nomu rivni [Substantiation of behavioral patterns of decision-making by financial and economic entities at the regional level]. Rehional'na ekonomika - Regional Economy, 99 (1), 72-80. DOI: https://doi.org/10.36818/1562-0905-2021-1-8. [in Ukrainian].
Sources: 14

Authors



Voznyak Halyna Vasylivna

Doctor of Economics, Senior Researcher

Leading Researcher of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: gvoznyak@gmail.com

Webpages:

Benovska Liliya Yaroslavivna

Ph.D. of Economics, Senior Researcher

Senior Researcher, Scientific Secretary of the unit of the Department of regional financial policy of the Dolishniy Institute of Regional Research of NAS of Ukraine

Contacts: lbenovska11@gmail.com

Webpages:

Resume

Understanding the psychology of management decisions and the ability to avoid the most common mistakes is the success of any financial and economic projects is outlined. Under conditions of uncertainty and under the influence of personal characteristics, the economic entity cannot objectively assess the risks and prospects, which leads to irrational decisions. An important task is to find mechanisms and tools to adjust the process of irrational decision-making by regional economic actors. The purpose of the article is to substantiate the behavioral patterns inherent in the decision-making process of financial and economic entities at the regional level. The following methods were used for the study: abstract-logical, comparative analysis, graphical visualization. The article presents three models of management decisions by financial and economic entities: classical, behavioral, irrational. The peculiarities of the behavioral model and the factors influencing an entity’s irrational decision-making are revealed. The most common effects that provoke irrational behavior of regional economic entities are highlighted. The behavioral approach has been transferred to the meso level because the irrational behavior of people can be traced at all levels of government, and behavioral effects can be considered in the context of the enterprise, community, region as a group of people and as a whole “organism”. A model of irrational management decision-making by a regional economic entity is built. The consequences of irrational management decisions of regional economic entities are clarified and tools for their correction are proposed. Such tools should contribute to 1. improving the information support of financial and economic entities, eliminating the deficit and asymmetry of information, increasing the digital competencies of information consumers; 2. accumulation of behavioral financial literacy, which will reduce the negative impact of behavioral prejudices and allow to predict irrational decisions, сontrolling the behavior of financial and economic entities.

Keywords:

irrational management decision, behavioral finance, region, authorities, financial economic relations

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